What are the components of GST?
There
are 3 applicable taxes under GST: CGST ,SGST , IGST !
CGST: Collected
by the Central Government on an intra-state sale (Eg: Within Karnataka)
SGST: Collected
by the State Government on an intra-state sale (Eg: Within Karnataka)
IGST: Collected
by the Central Government for inter-state sale (Eg: Karnataka to Tamil Nadu)
In
most cases, the tax structure under the new regime will be as follows:
Transaction
|
New Regime
|
Old Regime
|
|
Sale
within the State
|
CGST +
SGST
|
VAT +
Central Excise/Service tax
|
Revenue
will be shared equally between the Centre and the State
|
Sale to
another State
|
IGST
|
Central
Sales Tax + Excise/Service Tax
|
There will
only be one type of tax (central) in case of inter-state sales. The Center
will then share the IGST revenue based on the destination of goods.
|
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